. >> eliot: this has been a fascinating education in the rules of governing. >> i'm glad you brought it up. the opportunity actually allowed democracy, small d., to work. >> eliot: this is where the two sides are bumping heads. my suspicion is that the republicans will cave on rates and say ok, we'll give you your tax breaks for the 98% but not vote to raise the debt ceiling try to use that. >> i think the president will insist as part of any agreement that we deem with the debt ceiling. the republicans can allow the tax cuts to proceed and say we're going to work on round two. the american public did not look kindly on the republicans holding the entire economy hostage. the fiscal cliff is bad, but not irretrievable. you can go into january and still put the pieces back together. as you know, defaulting on the debt is irretrievable thing. that's the economic equivalent of a nuclear weapon. that is a big dynamite compared to the fiscal cliff crew having said that, as they get to the year end, i think they'll say we'll vote to extend middle class tax cuts. our leverage is greater beca